Southern Europe Faces Two Consecutive Years of Poor Harvests... Olive Oil Prices Soar

"Prices Reach Highest Level Due to Bad Weather and Drought Impact"

Olive oil prices are soaring as poor harvests continue, especially in Southern Europe, which accounts for more than half of the world's olive oil production.

On the 22nd (local time), The New York Times (NYT) pointed out in an article titled "Why Olive Oil Is So Expensive Now" that "olive oil prices have more than doubled over the past year, soaring to record levels."

According to the report, Southern European regions, including Spain, account for more than two-thirds of global olive oil production. However, olive harvests have sharply declined due to abnormal temperature phenomena hitting Southern Europe. In particular, Spain has seen reduced olive production due to consecutive climate changes and weather anomalies such as heatwaves reaching 45-50℃, severe drought lasting for months, cold damage, and massive wildfires.

Regarding this situation, Olive Oil Times, a U.S. olive oil specialty publication, reported, "Due to worsening weather and prolonged drought, the price of Spanish olive oil has reached its highest level in 26 years and continues to rise," adding that "experts predict that prices will remain at historically high levels for the foreseeable future."

[Image source=Yonhap News]

The European Commission (EC) recently announced that olive oil production in European Union (EU) member countries such as Spain and Italy sharply declined by 40% last year and is expected to increase only marginally this year.

As olive harvests decrease, olive oil prices continue to soar. According to market research firm IRI, the price of a 750ml olive oil product rose about 22%, from $9 in October last year to $11 currently.

This has increased the economic burden on consumers. A wholesale olive oil supplier in California, USA, said, "I heard that the largest supplier raised prices by 30% in July," adding, "Consumers will face higher prices."

Additionally, a pizza shop owner in Brooklyn, New York, said, "We are a small business with thin margins. However, rising prices of essential ingredients like olive oil make it difficult to offer high-quality, affordable pizza."

This content was produced with the assistance of AI translation services.